SMIC released its fourth-quarter and full-year 2024 financial results on March 27, reporting record revenue and wafer shipments. However, profitability declined amid persistent US export controls and reduced investment income. Net profit attributable to shareholders dropped more than 20% year-over-year.
Full-year revenue rose 27.7% year-over-year to CNY57.8 billion (approx. US$7.95 billion), according to SMIC's earnings report and Cninfo filing. Core business revenue reached CNY57.11 billion, up 28.1%, while wafer foundry revenue grew 30.3% to CNY53.25 billion. Net profit attributable to shareholders fell 23.3% to CNY3.7 billion, with earnings per share at CNY0.46. The company reported a full-year gross margin of 18.6% and a capacity utilization rate of 85.6%. EBITDA increased 16.1% year-over-year to CNY31.56 billion.
Fourth-quarter revenue reached CNY15.92 billion, up 2% sequentially and setting a new quarterly record. However, net profit declined by 13.5% to CNY992 million. Both full-year and fourth-quarter gross margins were 18.6%, down from the previous year.
ASP declines while consumer electronics gains share
ICsmart data shows that consumer electronics became SMIC's largest end-market in 2024, accounting for 37.8% of total revenue, up 12.8 percentage points year-over-year. Smartphones contributed 27.8%, while revenue from computers and tablets dropped to 16.6%. Wearables and IoT made up 10%, and industrial and automotive segments comprised 7.8%, reflecting a shift toward consumer-centric smart devices.
Revenue from 8-inch wafers declined to 22.7% in 2024, down from 26.3% the prior year, while 12-inch wafers increased their share to 77.3%, up from 73.7%.
Wafer shipments hit a record 8.02 million 8-inch-equivalent units in 2024, up 36.7% from the previous year. However, the average selling price (ASP) fell by 4.7% to CNY6,639, down from CNY6,967 in 2023.
US sanctions persist as SMIC doubles down on localization and R&D
According to Anue, Huawei's Mate 60 series—launched in 2023 with the Kirin 9000S chip—was produced by SMIC using deep ultraviolet (DUV) lithography, reaching a level comparable to 7nm despite US technology restrictions. The development prompted a US investigation into how Huawei acquired the advanced chip.
SMIC increased R&D spending in 2024 to US$765 million, representing 9.5% of total revenue. R&D personnel accounted for 12.1% of the company's workforce.
Capital expenditures for fixed assets, intangible assets, and other long-term investments totaled CNY54.56 billion in 2024, up 1.3% year-over-year. Operating cash flow came in at CNY22.66 billion, down 1.7%. Total assets stood at CNY353.4 billion at year-end.
Credit: AFP
Demand recovery gathers momentum across end markets
The global semiconductor sector showed recovery in 2024. Demand for smartphones, PCs, and consumer electronics stabilized, while wearables and IoT drove incremental growth. The automotive chip market experienced a correction due to inventory adjustments, but long-term prospects remain optimistic.
SMIC stated that short-term supply-demand imbalances would not derail the semiconductor industry's long-term growth. As digitalization expands across industrial, educational, medical, and commercial sectors, end-market demand is gradually improving. The company is ramping up process innovation, platform upgrades, and product mix realignment to better meet customer requirements.
2025 revenue growth expected to outpace peers; no dividend plan
SMIC expects its full-year 2025 revenue growth to outpace the industry average. Capital expenditures are projected to remain flat versus 2024. For the first quarter, the company forecasts 6% to 8% sequential revenue growth and a gross margin between 19% and 21%.
SMIC said it does not plan to issue a dividend for the fiscal year 2024, subject to approval at its 2025 annual shareholder meeting. Since its STAR Market listing in July 2020, the company has not initiated any dividend payouts.
Article edited by Jack Wu
